New rental deposit scheme launched to help islanders secure homes
- Guernsey Community Savings has launched an interest-free rental deposit scheme to help islanders secure homes in the private rental market
- The scheme is supported by a £50,000 grant from Employment & Social Security and will provide loans with no additional charges for deposits and rent in advance
- Applicants must be permanent Guernsey residents for at least 12 months and demonstrate they can afford rent and repay the loan
- Decisions will be made within 48 hours, with deposits paid directly to landlords and repayment schedules agreed with applicants
- The scheme replaces the Offenders Deposit Assistance Scheme and existing case-by-case arrangements, with repaid loans recycled to help other islanders
Guernsey Community Savings has launched an interest-free rental deposit scheme to help islanders who cannot afford the upfront costs of securing a home in the private rental market.
The scheme, supported by an initial one-off grant of £50,000 from Employment & Social Security, will provide interest-free loans with no additional charges to eligible applicants to cover rental deposits and rent in advance where required.
James Ellis, chair of Guernsey Community Savings, said the average rental deposit of £2,000, often alongside a month's rent in advance, represents an insurmountable barrier for many islanders on low incomes.
"With the ongoing shortage of social and affordable housing, the private rental market is the only realistic option for many islanders on low incomes. But finding a deposit which costs £2,000 on average, often alongside a month's rent in advance, can be an insurmountable barrier, even if you can afford the ongoing rent," Mr Ellis said.
He described the scheme as a natural extension of Guernsey Community Savings' work to tackle financial exclusion.
"We have spent the past six years building a trusted service for people who struggle to access mainstream banking, and we are well placed to administer a scheme that meets this very real need," he said.
"Given the pressures on Guernsey's housing market, this is likely to remain a critical issue for many years. We hope the scheme will make a real difference by helping more people secure a home."
Deputy Tina Bury, president of Employment & Social Security, said the scheme demonstrates what can be achieved through partnership working.
"This scheme is a great example of what can be achieved when government, charities and community organisations work together to solve a real problem facing islanders.
"For many people, finding the money for a deposit is the final hurdle to securing a home. By providing practical support at the right time, we can help people access stable accommodation while reducing the likelihood they'll need more intensive support later on," Deputy Bury said.
The scheme is designed to provide a single point of access for people needing help with rental deposits and rent in advance.
It will supersede the Offenders Deposit Assistance Scheme, which was established around ten years ago to help ex-offenders secure accommodation, and will replace the existing case-by-case arrangement through Employment & Social Security.
To qualify, applicants must have been permanent residents of Guernsey for at least 12 months and be eligible to live and work in the island.
They must also demonstrate they can afford the rent and repay the loan, including taking account of any financial support received through benefits.
The scheme has been designed to be flexible enough to accommodate a wide range of applicants.
Once approved, the deposit and any rent in advance will be paid directly to the landlord, with a repayment schedule agreed with the applicant. Guernsey Community Savings aims to make decisions within 48 hours, recognising that speed can be crucial in securing a rental property.
Charlie Cox, chief executive of At Home in Guernsey, welcomed the new scheme.
"Helping people overcome that initial barrier of finding the money needed for a deposit and rent in advance can be the difference between being able to secure a home and remaining stuck without one.
"We're really pleased to see this practical partnership approach developing and hope the scheme will help more islanders access the safe, stable accommodation they need," Mr Cox said.
John Robinson, chair of the Offenders Deposit Assistance Scheme, said: "We are delighted to welcome GCS's new rental deposit scheme launched with the support of ESS. We are particularly pleased that ex-offenders are included among those eligible for these loans, and on terms very similar to those available through ODAS."
Guernsey Community Savings has worked closely with Jeff Guilbert, chair of the Landlords Association, who has provided feedback on the scheme's landlord agreement and offered to publicise the scheme to the association's members.
Joe Brown, chief executive of Guernsey Community Savings, said the initial funding will come from Employment & Social Security, and the organisation is looking to secure additional funding to give the scheme a strong start and accommodate all applicants.
"As loans are repaid, the money will be recycled to help other islanders, allowing the scheme to support more people over time," Mr Brown said.
"We are hugely grateful to ESS for its valuable support, and to At Home in Guernsey, Action for Children, ODAS and the Landlords Association for helping us develop a scheme that we hope will make a practical difference to people who have been financially excluded from finding a home."
Further information is available at www.gcs.gg.
Q&A
Q: Who is eligible for the rental deposit scheme?
A: Applicants must have been permanent residents of Guernsey for at least 12 months, be eligible to live and work in the island, and demonstrate they can afford the rent and repay the loan, including any financial support received through benefits.
Q: How quickly will decisions be made on applications?
A: Guernsey Community Savings aims to make decisions within 48 hours, recognising that speed can be crucial in securing a rental property.
Q: What happens to the money once loans are repaid?
A: As loans are repaid, the money will be recycled to help other islanders, allowing the scheme to support more people over time.
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